Steel Authority of India Ltd (SAIL), the country's second largest producer, reported Rs 1,676 crore net profit for the quarter ended December 31, nearly double the Rs 843 crore in the corresponding quarter of the previous year, at the back of rising demand from auto and construction sectors.
Revenue for the quarter rose 12 per cent on a year on year basis to Rs 9,880 crore, said a company statement. Steel consumption in the country jumped 7.7 per cent in the nine months to December, boosted by the government’s plan to spend on road and infrastructure facilities.
SAIL’s volume sales jumped 23 per cent in the third quarter and the company raised prices this month, taking advantage of increasing demand.
The cost of raw material, including imported coking coal, fell 35 per cent to Rs 3,820 crore during the period, according to the statement.
The company, may spend as much as Rs 13,000 crore to expand capacity in the year ending March 31, 2011, compared with an estimated Rs 10,350 crore this financial year, said S K Roongta, chairman, to reporters here.
SAIL plans to offer 10 per cent of its equity capital and the government will sell a similar amount of stake in it. The company expects to raise as much as Rs 5,000 crore from its portion of the sale, based on current prices, said Roongta.
The stock fell by 3.1 per cent to Rs 216.3 a share on the Bombay Stock Exchange on Friday.
